Data Residency

Requirements specifying where data must be physically stored or processed, often driven by legal, regulatory, or sovereignty concerns.

Also known as:Data LocalizationData Sovereignty

What is Data Residency?

Data residency refers to the physical or geographic location where data is stored and processed. Many regulations and organizational policies require data to remain within specific jurisdictions, often for privacy, security, or sovereignty reasons.

Why Data Residency Matters

Regulatory Compliance

  • GDPR (EU data in EU)
  • Data localization laws
  • Industry-specific requirements
  • Government regulations

Data Sovereignty

  • National security concerns
  • Legal jurisdiction
  • Government access rights
  • Cross-border transfer rules

Business Requirements

  • Customer contracts
  • Industry standards
  • Risk management
  • Performance optimization

Key Considerations

Storage Location

  • Primary data center location
  • Backup and DR sites
  • Cloud region selection

Processing Location

  • Where data is computed
  • Analytics processing
  • AI/ML training locations

Transit Paths

  • Data transfer routes
  • Network paths
  • CDN locations

Challenges

  • Multi-cloud complexity
  • Global operations
  • Evolving regulations
  • Cost implications
  • Performance trade-offs

Solutions

  • Region-specific deployments
  • Data localization features
  • Contractual guarantees
  • Technical controls
  • Audit and monitoring